By KYIV. Dec 1 (Interfax-Ukraine) – The Government of Canada successfully completed the issuance of a five-year CAD 500 million Ukraine Sovereignty Bond (around $372.3 million at the current exchange rate).
"The investor base for the Ukraine Sovereignty Bond is primarily Canadian, with nearly $50 million in demand from individual Canadians. Overall it includes a broad range of domestic and international institutional investors, different orders of government, and international official sector institutions like central banks," the government said in a press release.
According to the press release, the issuance received strong demand from investors in Canada and abroad, with a total book order of CAD 500 million, and resulted in a semi-annual interest payment of 3.245%. The bond will mature on August 24, 2027 – Ukrainian Independence Day – at which time bondholders will receive the full repayment of their initial investment.
Following negotiations with Ukraine, an amount equal to the proceeds from the bond will be transferred to Ukraine in the form of a loan through the International Monetary Fund (IMF) Administered Account for Ukraine.
According to the report, Canada’s financial assistance including this bond issuance total CAD 2.5 billion. Consistent with the terms of Canada’s financial assistance to Ukraine to date, the funds provided to Ukraine cannot be used for lethal activities or purchases.
Canada has separately committed more than CAD 2.5 billion in military, humanitarian, and other assistance to Ukraine this year.
